Month: March 2019
accelerate the process to fully lower the market access threshold for foreign investments in
banking, securities and insurance, the premier said. Service sectors, including medical care and educ
ation, will be opened up along with transportation, infrastructure and energy, he said.
Li said China will further make it easier for foreign companies to set up a venture capital presence and will improve regulati
ons on foreign investors’ strategic investments in listed companies and their mergers with and acquisitions of domestic enterprises.
Also, preferential policies for investments from Hong Kong, Macao and Taiwan w
ill remain unchanged, and greater development opportunities will be offered for them, Li said.
Wang Huiyao, president of the Center for China and Globalizaton, said he was impressed by Li’s speech to cl
ean up rules and regulations inconsistent with the Foreign Investment Law as well as to launch a more streamlined negative list.
“It shows China’s attitude of further opening-up, which is a higher-level and more concrete commitment of China,” he said.
Leif Johansson, chairman of global biopharmaceutical giant AstraZeneca, said
Li’s speech reflects the determination to create a more open, fair and transpare
Chinese local government bonds worth 1.4 billion yuan ($208.5 million) were snapped up by retail investors within a single day, after counter sales in banks we
re made available for the first time. The fundraising will help supplement a broader fiscal deficit this year, analysts said.
On Monday, individuals in China were able to purchase bonds issued by t
he Zhejiang provincial government (five-year term, 3.32 percent coupon rate) and the N
ingbo city government (three-year term, 3.04 percent coupon rate). Proceeds from the sales will be used for land purchases (300 million yuan) and shantytown renovations (1.1 billion yuan), acc
ording to a notice on the website of China Central Depository and Clearing, a clearinghouse under the central bank.
The minimum investment amount for retail investors is 100 yuan, lower than most wealth management products issu
ed by commercial banks. Previously, individual investors could only purchase bonds issued by the central government, kno
wn as treasury bonds. And before Monday, local government bonds were traded mainly in the interbank market.
nts in Sichuan, Shaanxi and Shandong provinces as well as Beijing will eventually be able to sell bonds at count
ers in commercial banks directly to retail investors, and the practice will be expanded nationwide after an additional period of time.
The ministry said individuals do not need to pay taxes on the bonds’ interest income, and this policy is likely to attract more investors.
Selling local government bonds to retail investors should facilitate liquidity
in the secondary market, improve the market-oriented bond pricing mechanism and pu
sh issuers to enhance the quality of information disclosure, said Amanda Du, a Moody’s vice-president and senior analyst.
“Higher coupon rates compared with treasury bonds, and the tax exemption on the interest income, make
local government bonds more attractive for retail investors,” she said. “The fast takeup by retail investors also indicates that the
bonds have won high recognition among individual buyers, supported by the local governments’ high credit ratings.”
domestically rated “AAA”, the safest level. The sale to individual investors is mainly of project-link
ed special-purpose bonds, a type of local government bond vigorously promoted by the government in re
cent years. The cash flows generated from the underlying projects will be used as the primary repayment sources.
In China, there are two types of local government bonds: general bonds and special purpose bonds. According to the country’s 2019 budget repor
t, which was approved by the top legislature earlier this month, the budgeted deficit for local governments is 930 billion yuan, up 100 billi
on yuan compared with 2018, and this fund gap will be supplemented by general bonds.
In the meantime, 2.15 trillion yuan of special purpose bonds will be issued to support la
rge infrastructure projects, such as shantytown renovation projects and railways, said the ministry.
Letting individual buyers invest in local government bonds is a way to narrow the government’s financin
g gap, said Hu Yijian, a tax professor at Shanghai University of Finance and Economics. The gap is expected to expand, as policym
akers decided to cut about 2 trillion yuan in taxes and fees this year while at the same time increase spending on investment.
bird’s reproductive system was not behaving normally. The eggshell consists of two layers instea
d of one as in normal, healthy bird eggs, indicating the egg was retained too long inside the abdomen, Bailleul said.
This condition occurs in living birds as a result of stress. Unlaid eggs may be coated with a second laye
r, or sometimes more, of shell. This abnormality has also been documented in sauropod dinosaurs, and in fossil and living turtles.
In addition, the eggshell was extremely thin, thinner than a sheet of paper, and did not have the proportions of a healthy egg, Bailleul said.
hina’s civil aviation regulator has temporarily stopped issuing airworthine
ss certificates for Boeing 737 Max 8s because of safety concerns, a move an expert said will bring huge economic losses to Boeing.
Two Boeing 737 MAX 8s have crashed in the last five months. All 157 pa
ssengers and crew members of a 737 MAX 8 operated by Ethiopian Airlines died on Mar 10, includi
ng eight Chinese nationals. In October, the same model of plane, operated by Lion Air, went down over the Java Sea, killing 189.
inated and inter-connected, and fair and inclusive approach and forge a growth
model of vitality, a cooperation model of openness and win-win results, and a developm
ent model of balance and common benefits, so that people from across the world could share the benefits of economic globalization, Xi said.
This year marks the 70th anniversary of the founding of the People’s Republic of China, Wang said.
During his visit, Xi, based on China’s just-concluded Two Sessions earlier this month, illu
strated to the European leaders the fine performances of the Chinese economy which had overcome multiple challenges in 2018.
Wang said Xi also introduced the newly-adopted foreign investment law, emphasizi
ng that it is necessary to use legal means to better protect intellectual property rights and attract foreign investment.
Xi pointed out that China will continue to push forward all-round reform and opening-up, promote trade and investment
liberalization and facilitation, so that European friends can better share China’s development opportunities.
A memorial service was held on Wednesday for victims who died in a chemical plan
t explosion seven days prior in Xiangshui township, Yancheng city, East China’s Jiangsu province.
More than 200 officials, police officers, firefighters, bereaved families and volunteers attended the serv
ice at 7:30 am. The cars at the site honked their horns and attendees presented flowers to pay tribute to the victims.
To date, the deadly explosion of Jiangsu Tianjiayi Chemical Co in Yancheng’s Xiangshui county has claimed 78 lives.
According to Chinese tradition, the seventh day after a death marks the height of the mourning period.
subsidies continue gradual phase-out
China will whittle down subsidies on new energy vehicles as the industry develops and cost drops, aiming to boost high-quality development in the NEV sector.
The newest measure will lower subsidy standards for new energy passenger cars, buses and t
rucks, taking factors such as industry growth, cost reduction and subsidy phase-out policies into consideration, the
Ministry of Finance said in a joint statement Tuesday, adding the move was set to bring more competition in the industry.